Galt Ocean Mile Hotel Shuts Down

In the darkened ballroom of the once elegant Galt Ocean Mile Hotel, Ron Arbuckle could almost hear the rousing sounds of the bands that used to play.

Almost, because all that Arbuckle heard on Monday was silence.

Arbuckle had worked at the beachfront Fort Lauderdale hotel for 18 years. He was one of about 70 employees of the 275-room landmark who were suddenly unemployed. The hotel, which had struggled under the protection of the federal bankruptcy court since April 1985, closed on Monday morning.

``It`s the end of an era,`` said Arbuckle, the superintendent of services. ``This ballroom used to be packed all the time. This was the action joint.``

The only action outside the ballroom was several guests carrying their luggage through the lobby. Hotel officials said about 50 guests were informed in a notice on Sunday night that the hotel would close the next day.

``This is ridiculous,`` said an angry Mickey Rubin, of Lido Beach, N.Y. ``I wanted to spend the day on the beach and relax.``

The hotel, which opened in December 1957 with a three-day cocktail party, has been under the supervision of a bankruptcy-court appointed examiner, Daniel Bakst, a West Palm Beach attorney.

Bakst said the hotel will be auctioned in mid-July, unless a buyer is approved before then. He said he is negotiating with National Realty Services, a Washington, D.C. firm, which has offered $13.2 million.

``We had to close down or lose money for the summer months,`` Bakst said.

He said the bankruptcy court directed him two months ago to close the hotel by the end of April, after a proposed reorganization plan was rejected by creditors.

The hotel is owned by Galt Ocean Mile Hotel Associates Ltd., and the property is owned by GOMHA Inc. Both are headed by Leonard Mercer, a former Philadelphia developer, who acquired the hotel in October 1968 from Coral Ridge Properties Inc.

Mercer could not be reached for comment Monday, and his Miami attorney, Phyllis Bean, said she could not comment on the bankruptcy proceedings.

Bakst said the court has set a $14 million minimum sales price for the hotel, plus a 5 percent commission paid to a broker.

General Manager Hany Ayoub, who works for a Miami management firm operating the hotel, said employees were informed late Friday about Monday`s closing

He said about half of the hotel`s rooms had been closed for eight months because they were in poor condition. The rooms were open during Spring Break to accommodate college students, and closed again.

Ayoub estimated the hotel needs $4 million to $5 million in renovations.